Question
Assume a machine costs $40,000 and lasts six years before it is replaced. The operating cost is $4,000 per year. Ignore taxes. What is the
Assume a machine costs $40,000 and lasts six years before it is replaced. The operating cost is $4,000 per year. Ignore taxes. What is the equivalent annual cost (EAC) if the required rate of return is 14 percent?
Multiple Choice $24,445 $9.259 $10,667 $14,286 $10,286
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
